IN THE SUPREME COURT OF INDIA
R.V. Raveendran and A.K. Patnaik, JJ.
Appellants: Orissa Power Transmission Corporation Ltd.
Vs.
Respondent: Khageswar Sundaray and Ors.
Civil Appeal No. 6904 of 2011 (Arising out of S.L.P. (C) No. 12901 of 2008)
Decided On: 11.08.2011
This appeal arises out of the decision of the Orissa High Court to the effect that the decision of the appellant corporation prescribing a cut off date for obtaining the qualification of passing graduation or the Accounts examination in order to be eligible for two advance increments as arbitrary. Held the appellant as an employer has every right to prescribe such qualifications as may be necessary for the service benefits. Held there is no necessity for the appellant to state any reason for placing a cut-off date.
ORDER
A.K. Patnaik, J.
1. Leave granted.
2. This is an appeal against the order dated 18.12.2007 of the Division Bench of the Orissa High Court in OJC No. 5768 of 1994.
3. The facts very briefly are that the Orissa State Electricity Board (for short 'the OSEB') decided in its meeting held on 02.05.1970 that Lower Division Clerks (for short 'the LDCs') in the Circles, Divisions and Sub-Divisions of the OSEB shall be granted two advance increments in the time-scale of pay attached to the post on their becoming graduates while in service. Accordingly, an office order was passed by the Secretary of the OSEB on 17.06.1970 and LDCs of the OSEB would be granted two advance increments on their becoming graduates while in service. On 03.10.1970, a Tripartite Settlement was entered into by the OSEB with the Employees Unions regarding revision of wages of the employees of the OSEB and on 30.06.1971 an office order was issued by the Secretary of the OSEB giving the details of the revised scales of pay, dearness allowance and house rent allowance admissible to the employees of the OSEB as on 01.04.1969. Thereafter in terms of settlement dated 03.10.1970, the OSEB constituted an Anomaly Committee which was to examine inter alia the issue with regard to advance increments in the revised scales of pay for employees who became graduates while in service. The Anomaly Committee recommended inter alia that two advance increments which were given to LDCs working in the different Circles, Divisions and Sub-Divisions of the OSEB in the Pre-revised scale of Rs. 80-135 may be given such advance increments in the revised scale of pay when the employees become graduates or pass Accounts Examinations on or before 30.06.1971 and such advance increments may not be given to those employees who become graduates or pass Accounts Examinations subsequent to 30.06.1971. The recommendations of the Anomaly Committee were considered by the OSEB in its meeting held on 12.05.1973 and the OSEB accepted the recommendations of the Anomaly Committee saying that the employees, who graduated or passed Accounts Examinations on or before 30.06.1971, would be eligible for such two advance increments. The decision of the OSEB was followed by a Circular dated 16.07.1973 clearly saying that the benefit of advance increments shall be allowed in the revised pay-scale to the employees who have graduated or have passed the Accounts Examinations on or before 30.06.1971. The Respondent Nos. 1 to 5, who have been working as LDCs under the OSEB, passed the graduate examinations in the years 1974, 1975 and 1976 and were not granted two advance increments by the OSEB.
4. Aggrieved, the Respondent Nos. 1 to 5 filed a writ petition before the Orissa High Court being OJC No. 1428 of 1979 and the writ petition was disposed of by the High Court with a direction to the OSEB to dispose of the representations of the Respondent Nos. 1 to 5. Pursuant to the direction of the High Court, the OSEB rejected the representations. Thereafter, Respondent Nos. 1 to 5 filed another writ petition being OJC No. 2237 of 1981 claiming two advance increments. The OSEB in its counter-affidavit filed before the High Court stated that the earlier notification of 1970 under which two advance increments were given to employees of the OSEB who graduated while in service had been withdrawn. The High Court in its order dated 12.04.1989 held that since the basis of the relief claimed by Respondent Nos. 1 to 5 was the notification of 1970 which had been withdrawn, the High Court cannot grant any relief to the Respondent Nos. 1 to 5 but reserved liberty to the said Respondents to challenge the legality of the decision of the OSEB taken in its meeting held on 12.05.1973 confining the benefit of advance increments to those employees who had become graduates or passed Accounts Examinations on or before 30.06.1971. The Respondent Nos. 1 to 5 filed a fresh writ petition being OJC No. 5768 of 1994 praying for quashing the decision of
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